In an ideal world, all dreams come true and expectations are justified, but the art world often plays out a different scenario: misunderstandings and even open conflicts are not uncommon. The solution is quite simple – sign a contract.
Why Sign a Contract?
All business relationships between the artists and art business players (i.e., client, dealer, consultant, agent, representative, gallery, institution, foundation, museum, representative, art transportation or art shipping company, insurance and installation services) begin with the parties’ negotiations about the nature and quality of the artwork. Even if parties rely on mutual trust, it is important for all sides to emphasize a business relationship, which should therefore be regulated by a formal agreement.
What Is the Main Purpose of the Art Business Contract?
Contracts are indispensable in the art business, as they record the agreements and promises made between the parties, which are legally enforced or recognized. Their main purpose is to clarify and secure all legal issues, protect the parties and avoid possible gray areas in further cooperation.
What to Include In a Contract?
Parties in the art business could use various forms of contract depending on the situation, but the general structure would be the same. The key sections include, among others, each party’s details (name, business address, email, bank details, etc.); full details of the artwork or proposal; the scope of work; artwork copyright and permissions; timeline of the agreement; key stages and dates; rights, obligations, and responsibilities of the parties in relation to insurance, transportation, and installation; terms of remuneration and payment; warranties, applicable law and procedures for resolving disputes; and, finally, the termination terms. The contract should not be complicated – keep it as clear and precise as possible. This is the best way to protect the interests of all parties.
What Types of Contracts Are Used in the Art Business?
There are several types of contracts that are used by art players: contract for gallery exhibition, commission of artwork contract, funding contract, employment and hiring services contract, distribution contract, art sale contract, licensing contract, assignment of copyrights contract, sponsorship contract, insurance contract, art transportation contract, confidentiality/NDA contract, grant contract, consignment contract.
As you can see, signing a contract helps build a successful business relationship for all parties and provides greater transparency for future transactions. And this is what makes it an essential part of the art business.